Bank of America gets patent for exchange system of cryptocurrency

Recently, some of the biggest names in the business, from Goldman Sachs to Mastercard, have quietly patented some of the most promising blockchain technologies for themselves. As for now, Bank of America, which is also the second largest bank in the US is looking forward to developing cryptocurrency exchange services for its corporate clients.

On Tuesday, The U.S. Patent and Trademark Office has awarded a patent to the Bank of America which outlined a prospective cryptocurrency exchange system. This system will potentially convert one digital currency into another.

The patent comprises a potential three-part system. The first part will be a customer’s account and the other two would be accounts owned by the business running the system. The user will be able to store their chosen cryptocurrency through the customer account. The second account which is considered as a ‘float account’ will act as a holding area. The float account will contain the equal amount of cryptocurrency the customer is converting their funds to. While the third account will deposit the converted funds to the original customer account for withdrawal.

According to the patent,

“Enterprises may handle a large number of financial transactions on a daily basis. As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to exchange currencies and cryptocurrencies.”

Further details about the patent reveal that this service would be for clients of enterprise-level. In a case, if the bank roles out this project, it will be initially offered to businesses. The new system will be capable of dealing with illicit trades. It will also calculate the risk score based on the amount of cryptocurrency being transferred. However, a startup Bitcoin Bubble Burster is already working on developing a system which will predict when Bitcoin is about to crash.